The purpose of this chapter is to outline the guidance surrounding the requirement to issue a tax invoice. A tax invoice is a written paper or electronic document which records the details of a taxable supply which has been made. The issue of a valid tax invoice is important for suppliers as it may be used to dictate the date of supply, and therefore determines the tax period in which the output tax should be accounted for. The receipt of a valid tax invoice is important for recipients of supplies as it is the primary documentary evidence used to support the recovery of VAT incurred as input tax.

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Chapter 13 - Tax Invoices
Chapter 13
Tax Invoices
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Tax Invoices
Chapter Summary
The purpose of this chapter is to outline the guidance surrounding the
requirement to issue a tax invoice.
A tax invoice is a written paper or electronic document which records the
details of a taxable supply which has been made. The issue of a valid tax
invoice is important for suppliers as it may be used to dictate the date of
supply, and therefore determines the tax period in which the output tax
should be accounted for.
The receipt of a valid tax invoice is important for recipients of supplies as it is
the primary documentary evidence used to support the recovery of VAT
incurred as input tax.
Chapter 13 - Tax Invoices

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Chapter 13 - Tax Invoices
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When must a tax invoice be issued?
A VAT registered person must issue a tax invoice (also
known as “VAT invoice”) and deliver it to the recipient
when it makes a taxable supply of goods or services.
Furthermore, a VAT registered person making a
deemed supply must issue a tax invoice and either
deliver it to the recipient (if there is a recipient) or
retain it as part of their records (if there is no
recipient).
There are a number of situations when a tax invoice is
not required to be issued:
● When the supply is subject to VAT at 0% and there
are or will be sufficient records available to
establish the particulars of the supply.
● Subject to conditions that may be imposed by the
FTA, where the FTA has determined that it would be
impractical to require a tax invoice to be issued by
the taxable person.
●
It should be noted that exempt supplies are not subject
to UAE VAT are not considered taxable supplies, and
therefore do not require a tax invoice. A person making
a supply to another GCC Implementing State where the
place of supply is in that state must, however, issue a
document which contains most requirements of the tax
invoice.
Who must issue a tax invoice?
A tax invoice must normally be issued, or arranged to
be issued, by a supplier of goods or services. However,
in certain situations a tax invoice may either not be
required or may be issued by another person.
Buyer-created tax invoices
In certain commercial situations, it may be easier for a
recipient of goods or services to identify the particulars
of what has been supplied, and therefore to issue a tax
invoice.
For example, where scrap metal is sold to a scrapyard,
the details of the supply (e.g. the quality and value of
scrap metal) might not be known until the scrap is
received and valued at the scrapyard. In these
situations, the supplier and the recipient may agree
that the recipient will issue the tax invoice instead of
the supplier. Such a tax invoice would then be treated
as if it had been issued by the supplier and therefore
conditions for issuing a tax invoice have been met.

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Chapter 13 - Tax Invoices
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A buyer-created tax invoice may be issued where:
● the recipient is registered for VAT; and
● the supplier and the recipient agree in writing
that the supplier will not issue a tax invoice in
respect of any supply to the recipient.
Where the conditions above are met, the recipient will
be able to issue a tax invoice for a purchase. Such a tax
invoice must contain all the particulars normally
required in a tax invoice and must be identified by the
words “buyer-created tax invoice”.
Where a buyer-created tax invoice is issued, the
supplier should not issue a separate tax invoice. In such
cases, any document issued by the supplier purporting
to be a tax invoice will not be a valid tax invoice.
Invoices issued by agents
Where a VAT-registered agent makes a supply of goods
or services on behalf of the principal supplier of those
goods or services, the agent may issue a tax invoice in
relation to that supply with the particulars of the agent
(such as name, address and TRN) – as if that agent had
made the supply of goods or services itself. The invoice
should, however, contain a reference to the principal
supplier (including the supplier’s name and TRN)
somewhere on the invoice.
If the agent issues an invoice on behalf of the principal
supplier, the principal supplier should not issue their
own tax invoice.
Where the invoice is issued by the agent, the supply is
still treated as being made by the principal supplier to
the recipient of the supply. As a consequence, the
supplier has to account for the relevant VAT and must
comply with all the record-keeping requirements in
respect of the supply.
Timing for issuing tax invoices
A tax invoice must be issued within 14 calendar days of
the date of supply.
The only exception to this rule is a summary tax invoice
that may be issued by a taxable person. Where a
taxable person makes more than one supply of goods
or services to the same recipient during a month, the
taxable person may issue a single tax invoice for these
supplies in the same calendar month as the supplies
took place. In these circumstances, the summary tax
invoice will be treated as issued on time, even if it is
issued more than 14 day from the date of supply of any
supply covered by the tax invoice.

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Chapter 13 - Tax Invoices
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Key information on a tax invoice
Tax invoices

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Chapter 13 - Tax Invoices
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In order for a tax invoice to be valid it must contain the
following particulars:
● the words “Tax Invoice” clearly displayed on
the invoice;
● the name, address, and TRN of the supplier;
● where the recipient of the supply is
registered for VAT, the name, address, and
TRN of the recipient;
● a sequential tax invoice number or a unique
invoice number;
● the date of issuing the tax invoice;
● the date of supply (where different from
date of issue of the tax invoice);
● a description of the goods or services
supplied;
● for each good or service, the unit price, the
quantity or volume supplied, the rate of VAT
and the amount payable expressed in AED;
● the amount of any discount offered;
● the gross amount payable expressed in AED;
● the tax amount payable expressed in AED
together with the rate of exchange applied;
and
● where the invoice relates to a supply under
which the recipient is required to account
for VAT, a statement that the recipient is
required to account for VAT, and a reference
to the relevant provision of the Law.
Simplified tax invoice
In addition to a ‘full’ tax invoice, in certain situations a
person may issue a ‘simplified tax invoice’. A simplified
tax invoice may be issued in the following two
situations:
● where the recipient is not registered for VAT; or
● where the recipient is registered for VAT and
the consideration for the supply does not
exceed AED 10,000.

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The information required to be stated on a simplified
tax invoice is not as extensive as for the full invoice,
and includes:
● the words “Tax Invoice” clearly displayed on the
invoice;
● the name, address, and TRN of the registered
supplier;
● the date of issuing the tax invoice;
● a description of the goods or services supplied;
and
● the total consideration and the VAT amount
charged.
It should be noted that issuing a simplified tax invoice
instead of a full tax invoice is optional – for example,
the supplier may choose to issue a full tax invoice even
when the recipient is not registered for VAT and a
simplified tax invoice is therefore available.
Invoices for intra-GCC supplies
Where a VAT registered person makes a cross-border
supply of goods or services with the place of supply
taking place in another GCC Implementing State, the
person must issue a document with specific particulars,
being:
● the usual information that must be included in a tax
invoice, but without the label “Tax Invoice” and
without charging any VAT;
● the tax registration number of the recipient in the
Implementing State; and
● a statement that the supply is a cross-border supply
between the UAE and another GCC Implementing
State.
● The supplier does not need to issue any other tax
invoice for such intra-GCC supplies.
Invoices in a foreign currency
The currency stated on a tax invoice must be the UAE
Dirham. In the event that a supply is made in a
currency other that the UAE Dirham, the amount must
be converted into and stated in UAE Dirham on the tax
invoice. The invoice may still contain information
regarding prices in the original currency.
When converting the foreign currency into the UAE
Dirham, the exchange rate used must be a rate
approved by the UAE Central Bank.
Rounding rules
Where the invoice amount is a fraction of a fils, the
amount should be rounded to the nearest fils (that is,
to two decimal places) on a mathematical basis, being:
● rounded up if the fraction is a half or more; and
● rounded down if the fraction is less than a half.

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Chapter 13 - Tax Invoices
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Invoices within a tax group
A tax group is a single entity for VAT purposes meaning
supplies between members of the same tax group are
disregarded for VAT purposes. As such, there is no need to
account for VAT or issue tax invoices in respect of
intra-group supplies.
Adjusting output tax on tax invoices
There may be instances where output tax originally
charged on a supply has to be adjusted – for example, due
to an adjustment of the price or due to a mistake.
In such instances, the supplier must account for the
correct amount of VAT, and must issue a document
recording the correction.
Thus, where the output tax charged is less than the output
tax that should have been charged following the
adjustment (i.e. there has been a price increase), the
supplier must issue a tax invoice for the difference and
provide it to the recipient, with the following effects:
● the supplier has to account for the additional
output tax to the FTA on the tax return that relates
to the tax period in which the adjustment is made;
and
● the recipient can treat the additional VAT incurred
as input tax subject to the normal input tax
recovery rules in the tax return for the tax period
in which the tax invoice is received.
In contrast, where the output tax charged is more than
the output tax that should have been charged following
the adjustment (i.e. there has been a price decrease),
the supplier must issue, and provide to the recipient, a
tax credit note, with the following effects:
the supplier can recover from the FTA the output tax
which was previously accounted for in respect of the
amount of reduction, by reducing the output tax in the
tax return for the tax period in which the adjustment is
made; and
the recipient must reduce their input tax by the
amount of VAT related to the reduced amount in the
tax return for the tax period in which the tax credit
note is received.
Exact Invoice Total
After applying rule
Exact Invoice Total
After applying rule
35.3 35
78.8 79
515.5 516

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Key requirements of a tax credit note
In order for a tax credit note to be valid, it must reflect the
error in the original tax invoice. Therefore, a credit note
should contain the following:
● the words “Tax Credit Note”;
● the name, address, and TRN of the supplier;
● where the recipient is registered for VAT, their name,
address, and TRN;
● the date of issuing the tax credit note;
● the value of the supply shown on the tax invoice, the
correct amount of the value of the supply, the
difference between those two amounts, and the VAT
charged that relates to that difference in AED;
● a brief explanation of the circumstances giving rise to
the adjustment; and
● information sufficient to identify the supply to which
the adjustment relates.
Similar to tax invoices, the FTA has the ability to determine
situations when tax credit notes are unnecessary or can
contain different particulars. Similarly, a tax credit note may
be issued by a VAT registered agent of the taxable person
making a supply or by the recipient of the supply with the
agreement of the supplier (with words “buyer- created tax
credit note” clearly displayed on the credit note).
Record-keeping requirements
A VAT registered business must retain the following
records for at least 5 years from the end of the tax period
to which they relate, except for records relating to Real
Estate, which need to be retained for 15 years:
Invoices and Credit
Notes
Records VAT account
All tax invoices and
alternative documents
received
Records of all supplies
and imports of goods
and services
VAT due on taxable
supplies
All tax credit notes and
alternative documents
received
Records of exported
goods and services
VAT due on taxable
supplies pursuant to
the reverse charge
mechanism
All tax invoices and
alternative documents
issued
Records of goods and
services that have been
disposed of or used for
matters not related to
business, showing taxes
paid
VAT due after error
correction or
adjustment
All tax credit notes and
alternative documents
issued
Records of goods and
services purchased for
which the input tax was
not deducted
VAT deductible on
supplies and imports
Records of adjustments
or corrections made to
accounts or tax invoices
VAT deductible after
error correction or
adjustment

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Chapter 13 - Tax Invoices
f) The date of supply if different from the date the Tax
Invoice was issued.
g) A description of the Goods or Services supplied.
h) For each Good or Service, the unit price, the quantity
or volume supplied, the rate of Tax and the amount
payable expressed in AED.
i) The amount of any discount offered.
j) The gross amount payable expressed in AED.
k) The Tax amount payable expressed in AED together
with the rate of exchange applied where the currency
is converted from a currency other than the UAE
dirham.
l) Where the invoice relates to a supply under which the
Recipient of Goods or Recipient of Services is required
to account for Tax, a statement that the Recipient is
required to account for Tax, and a reference to the
relevant provision of the Decree-Law.
2) A simplified Tax Invoice shall contain all of the following
particulars:
11
Cabinet Decision No. 52 of 2017 –
Issued 26 November 2017 Cabinet
Decision No. 46 of 2020 – Issued 4 June
2020 Cabinet Decision No. 24 of 2021 –
Issued 11 March 2021
Article 59 – Tax invoices
1) A Tax Invoice shall contain all of the following
particulars:
a) The words “Tax Invoice” clearly displayed on the
invoice.
b) The name, address, and Tax Registration
Number of the Registrant making the supply.
c) The name, address, and Tax Registration
Number of the Recipient where he is a
Registrant.
d) A sequential Tax Invoice number or a unique
number which enables identification of the Tax
Invoice and the order of the Tax Invoice in any
sequence of invoices.
e) The date of issuing the Tax Invoice.
The Executive Regulation of the
Federal Decree-Law No. 8 of 2017
on Value Added Tax
a) The words “Tax Invoice” clearly displayed on the
invoice.
b) The name, address, and Tax Registration Number of
the Registrant making the supply.
c) The date of issuing the Tax Invoice.
d) A description of the Goods or Services supplied.
e) The total Consideration and the Tax amount charged.

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3) If there are or will be sufficient records
available to establish the particulars of a
supply, a Taxable Person is not required to
issue a Tax Invoice for the supply where the
supply is a wholly zero-rated supply.
4) Where a Taxable Person is required to issue
a Tax Invoice, the Tax Invoice must meet the
requirements of Clause 1 of this Article.
5) As an exception to Clause 4 of this Article,
the Taxable Person may issue a Tax Invoice
that meets the requirements of Clause 2 of
this Article in either of the following
situations:
a) Where the Recipient of Goods or
Recipient of Services is not a Registrant.
b) Where the Recipient of Goods or
Recipient of Services is a Registrant and
the Consideration for the supply does
not exceed AED 10,000
6) A Taxable Person shall not issue separate Tax
Invoices in respect of supplies where he
makes more than one supply of Goods or
Services to the same Person and those
supplies are included on a summary Tax
Invoice issued to the Recipient of Goods or
Recipient of Services in the same calendar
month as the Date of Supply of those
supplies.
7) Where the Authority considers that there are or will be
sufficient records available to establish the particulars of any
supply or class of supplies, and that it would be impractical to
require that a Tax Invoice be issued by the Taxable Person, the
Authority may determine that, subject to any conditions that
the Authority may consider necessary:
a) Any of the particulars specified in Clauses 1 or 2 of this
Article shall not be contained on a Tax Invoice.
b) A Tax Invoice is not required to be issued in certain cases.
8) The Taxable Person may issue a Tax Invoice by electronic
means provided that:
a) The Taxable Person must be capable of securely storing a
copy of the electronic Tax Invoice in compliance with the
record keeping requirements.
b) The authenticity of origin and integrity of content of the
electronic Tax Invoice should be guaranteed.
9) Where a Recipient agrees to raise a Tax Invoice on behalf of a
Registrant Supplier in respect of a supply of Goods or
Services, that document shall be treated as if it had been
issued by the supplier if the following conditions are met:
a) The Recipient of the Goods or Services is a Registrant.
b) The supplier and the Recipient agree in writing that the
supplier shall not issue a Tax Invoice in respect of any
supply to which this Clause applies.
c) The Tax Invoice shall contain the particulars required
under Clause 1 of this Article.
d) The words “Tax Invoice raised by buyer” are clearly
displayed on the Tax Invoice.

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10) Where a Tax Invoice is issued pursuant to Clause 9
of this Article, any invoice issued by the Supplier in
respect of that supply shall be deemed not to be a
Tax Invoice.
11) Where an agent who is a Registrant makes a
supply of Goods and Services for and on behalf of
the principal of that agent, that agent may issue a
Tax Invoice in relation to that supply as if that
agent had made the supply, and provided that the
principal shall not issue a Tax Invoice.
12) Where the Supply of Goods or Services is
considered as supplied in an Implementing State,
the Taxable Person must include the following
additional particulars in the document issued:
a) The tax registration number of the Recipient of
Goods or Services issued to him by the
competent authority of the Implementing
State in which the supply is treated as taking
place.
b) A statement identifying the supply as between
the State and an Implementing State.
c) Any other information specified by the
Authority.
Article 60 – Tax Credit Note
1) The Tax Credit Note shall contain the following:
a) The words “Tax Credit Note” clearly displayed on
the invoice.
b) The name, address, and Tax Registration Number
of the Registrant making the supply.
c) The name, address, and Tax Registration Number
of the Recipient where he is a Registrant.
d) The date of issuing the Tax Credit Note.
e) The value of the supply shown on the Tax Invoice,
the correct amount of the value of the supply, the
difference between those two amounts, and the
Tax charged that relates to that difference in AED.
f) A brief explanation of the circumstances giving
rise to the issuing of the Tax Credit Note.
g) Information sufficient to identify the supply to
which the Tax Credit Note relates.
2) Where, on application by a Taxable Person, the
Authority considers that there are or will be sufficient
records available to establish the particulars of any
supply or class of supplies, and that it would be
impractical to require that a Tax Credit Note be issued
by the Taxable Person, the Authority may determine
any of the following, subject to any conditions that
the Authority may consider necessary:

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3) The Taxable Person may issue a Tax Credit Note by
electronic means provided that:
a) The Taxable Person must be capable of
securely storing a copy of the electronic Tax
Credit Note in compliance with the record
keeping requirements.
b) The authenticity of origin and integrity of
content of the electronic Tax Credit Note
should be guaranteed.
4) Where a Recipient of Goods or Recipient of
Services agrees to raise a Tax Credit Note on behalf
of a Registrant Supplier in respect of a supply of
Goods or Services, that document shall be treated
as if it had been issued by the supplier if the
following conditions are met:
a) The Recipient of Goods or Recipient of Services
is a Registrant.
b) The Supplier and the Recipient of Goods or
Recipient of Services agree that the Supplier
shall not issue a Tax Credit Note in respect of
any supply to which this Clause applies.
c) The Tax Credit Note shall contain the
particulars required under Clause 1 of this
Article.
d) The words “Tax Credit Note created by buyer”
are clearly displayed on the Tax Credit Note.
5) Where a Tax Credit Note is issued pursuant to Clause
4 of this Article, any tax credit note issued by the
supplier in respect of that supply shall be deemed not
to be a Tax Credit Note.
6) Where an agent who is a Registrant makes a supply of
Goods and Services for and on behalf of the principal
of that agent, that agent may issue a Tax Credit Note
in relation to that supply as if that agent had made
the supply, and provided that the principal shall not
issue a Tax Credit Note.
7) Where approval has been granted by the Authority
under Clause 2 of this Article, that approval may be
withdrawn at any time where the Authority considers
that the conditions of that approval have not been
met.
Article 61 – Fractions of Fils
Where the Tax chargeable on a supply is calculated to a
fraction of a Fils, the Taxable Person is permitted to
round the amount to the nearest Fils on a mathematical
rounding.